Lone Star Funds will acquire industrial equipment maker Hillenbrand for $2.3 billion in cash, valuing the deal at approximately $3.8 billion including debt.

Target Information

Investment firm Lone Star Funds has announced its agreement to acquire Hillenbrand, a prominent industrial equipment manufacturer, in a transaction valued at $2.3 billion in cash. This transaction led to a significant increase in Hillenbrand’s share price, rising approximately 19% during early trading sessions. A Lone Star affiliate will acquire the company’s shares at a price of $32 each, which represents a 30% premium over Hillenbrand’s previous closing price of $24.62.

The total enterprise value of the deal, which includes roughly $1.5 billion in debt, is estimated at around $3.8 billion. The acquisition is projected to be finalized by the end of the first quarter of 2026.

Industry Overview

Hillenbrand operates in the industrial equipment sector, providing a range of machinery, including plastic molding equipment and recycling processing systems aimed at the food and materials industries